1. Practical Implications of the CSDDD: A Threat to its Effectiveness
- Author
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Roessingh, Davine, ten Bruggencate, Hylke, Baks, Lissane, Dumoulin, Sven, Roessingh, Davine, ten Bruggencate, Hylke, Baks, Lissane, and Dumoulin, Sven
- Abstract
• Amending the concept of "value chain" to "chain of activities" (see section 3.1); • Amending the concept of "established business relationship" to "business partner" (see sections 2 and 3.1); and • Amendments to the civil liability regime (see sections 2.4 and 4.2). The CSDDD is expected to have significant practical implications for many companies and their value chains. From field research (questionnaires and follow-up discussions held with large companies in the scope of the proposed CSDDD, both listed and non-listed and including financial institutions) we have distilled the most pertinent practical implications that companies expect. This contribution discusses these expected practical implications. Although the relevant companies applaud the general aim and purpose of what the CSDDD seeks to accomplish, they also point to a number of significant shortcomings that will hamper its application in practice. These include the uncertainty of many of the expected effects and the ambiguity of many key terms and provisions of both the Commission Proposal and the Political Compromise. This may undermine the CSDDD's goal and effectiveness and already currently causes companies to incur difficulties in achieving operational and contractual readiness.
- Published
- 2023